Amsterdam 2018 data center market: A Time to Build

The data infrastructure investment pattern is changing. The last few years have seen phenomenal growth in the Amsterdam 2018 data center market which has expanded faster than Frankfurt or Paris, ending the year at 292 MW of supply. If you add Hyperscaler space to this, there is now more space in Amsterdam than in London.

But the signs are that this is just the beginning, and supply will soon struggle to keep pace with demand.

Eric Boonstra – CEO EvoSwitch

New Players, New Partners

The landscape is changing. There have been a handful of big data center players in Amsterdam for a while now. This year at least four big providers have bought or are looking for land to supply both the retail and the wholesale market.

Then there are the Hyperscalers, who are changing strategy. Hyperscalers used to focus on cheap out of town sites where they could keep their overheads down, but that has changed. Now they are also pursuing a colocation and build strategy, looking for proximity to colocation sites. Hyperscalers also need hyper-connected partners next door.

Mind the Gap

Market absorption rates are also revealing. The latest reports show that there is about 40MW available. Based on current market absorption statistics that will be gone in 18 months.  In other key European hubs, the absorption of available space looks set to take twice as long.

Home Growth

Closer to home, our own indicators are compelling. This month EvoSwitch won an AMS-IX Gold partner certification. That’s the fifth year in a row.  But this year there’s a difference – we were the only recipient.  In 2014 there were five Gold partners, last year there were three, now it’s just us.  This means that over the last year we sold significantly more AMS-IX ports than the rest of the Amsterdam Metro market.

AMS1 Campus build out

Add the above to a healthy international sales pipeline, and all the signs – both specific and general – are that 2018 will be a year of continued, and sharp, growth, with growing tension between demand and supply. So we are building a new data center on our AMS1 Campus, starting now and opening in Q1 2019. Hall 7 (working title) will consist of three identical buildings providing 2000 sqm of space with 2.5 MVA of power per building. It will be filled with the latest energy efficient technologies, drawing on what we learned in Hall 6, i.e. high-speed modular (9 * 88 rack modules) construction, adiabatic cooling.  Projected operating PuE will be 1.2, which we have already achieved next door, powered by 100% renewable energy.

So if you are in, or affected by, the data center market, brace yourself for major changes in the coming year.  And watch this (data center) space in 2018!

Eric Boonstra is the CEO of EvoSwitch. His focus on attracting international customers to EvoSwitch has been helped by his multi-sector experience, which includes senior management roles in Siemens, Staples and ABN AMRO View full bio